Earlier quoted context omitted.
What you are saying is incorrect. YouTube has deals with major content producers (music labels, movie studios, etc.) which work in the following way: whenever we discover a video that infringes their copyright, they can choose to either block it, monetize it or track it. What blocking means is quite obvious; monetizing means that we put ads in front of the video and share the revenue; tracking means no ads are shown,…
Google purchased YouTube and THEN entered into those content deals. Before that, it was very touch and go for YouTube-- they couldn't afford their bandwidth, let alone licensing deals, and many commenters said that Google was stupid to take on YouTube's copyright liability.
edit: Downvote all you want, it doesn't change history or facts, much as you may want it to.